If you’re like many people, you need to know about property management fees in Boston. How much are they, what do they cover, and how can you expect to pay them? This guide to property management fees in Boston explains it all.
What Are Property Management Fees in Boston?
Property management fees vary based on the type of property you need managed. For example, if you own a condominium complex and need the units managed – whether it’s a small condo building with five units or a high-rise with hundreds of units – your fees will most likely be based on the number of units in the building.
If you own a single-family home, your property management fees (at least in Boston) will generally amount to a percentage of the gross monthly rent. For example, if your property manager charged you 5 percent of gross monthly rent on a property for which you charged $2,000, you would pay your property manager $100 per month.
Related: What is property management?
Finding Out How Much Property Managers Charge
The best way to figure out how much a property manager will charge you is to call one and ask for a quote. Every property management company has its own fees – and its own level of service. Some property management companies in Boston may not provide the level of service you expect while charging a significant sum. That’s why it’s best to call and schedule a free analysis with a property management company you’re interested in working with; you can ask questions and determine whether you’re comfortable with the property manager, whether the services they provide justify their fee, and whether you can afford to work with the agency.
What Do Property Management Fees in Boston Pay For?
When you pay your property manager, you’re not simply paying someone to watch over the property. Your property management fees cover things like:
- Tenant screening, including background checks
- Rent collection
- 24-hour maintenance and repair (including emergencies)
- Coordination of all maintenance request and vendor proposals
- Tenant calls, emails and texts
- Property bill payments, including HOA dues, mortgage payments, and water and sewer
- Lease renewals and rent increases
- Move-out inspections with photos
- Disbursement of security deposits (less any damages)
- Detailed monthly and yearly statements
- Annual 1099 reports
- Funds transfers to banks (all performed electronically
- Housing court assistance when necessary
- Access to an “Owners’ Portal” where you can see details on rents, security deposits, leases and more
How Do You Pay a Property Manager?
Usually, property managers charge their fees as deductions from the rent collected on a property. For example, if you charge your tenant $2,000 per month to rent your home and your property manager’s fee is 5 percent of that, the fee is $100. When your tenant pays the property manager a monthly rent payment of $2,000, the property manger deducts the fee and sends you a deposit of $1,900.
At the end of the year, you’ll get a tax statement that reflects exactly how much you’ve paid your property management company for its services.
How Can You Find Out About Property Management Fees for Your Specific Property?
A good property manager will want to talk to you about his or her services and prices before you make a hiring decision. Most property managers will want to do a property walkthrough, too – and that helps you maximize your property’s rental income potential. From there, your prospective property manager will give you a quote and explain how you can get started.
Do You Need to Learn More About Property Management Fees in Boston?
Thinking about renting out a property – or about handing over the reins to someone who can manage a property you’re already renting? Call us at 617-262-3075. If it’s easier, you can fill out the form below. We’ll be happy to answer your questions, explain what types of services we provide, and help take away the stress of owning a property so all you have to do is kick back and wait for your rent payments to come in.